Relating to the name of and appointment of directors for the Harris-Montgomery Counties Management District.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Commission on Environmental Quality (TCEQ) • Harris County Commissioners Court
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025
Compliance Deadline: Immediate. There is no statutory grace period for the name change; all new filings and financial instruments must reflect the new nomenclature.
Agency Rulemaking: The Texas Commission on Environmental Quality (TCEQ) is not required to promulgate new rules, but will process Board appointment petitions under existing administrative codes immediately.
Immediate Action Plan
Finance: Update Vendor Master Files to replace "Harris-Montgomery" with "Southeast Regional Management District."
Risk Management: Audit all active Certificates of Insurance and request re-issuance with the correct entity name.
Legal: Scan contract repositories for the old name and attach a standard "Notice of Name Change" to active files.
Government Affairs: Update contact lists for Board Directors; recognize the shift in power regarding future Board composition.
Operational Changes Required
Contracts
Existing Agreements: While the legal entity remains continuous, you must execute a Notice of Name Change or a minor administrative amendment for all active Master Service Agreements (MSAs) and easements to ensure audit trails remain clear.
New Agreements: All contracts, deeds, and easements drafted after June 20, 2025, must cite the Southeast Regional Management District.
Hiring/Training
Accounts Payable/Receivable: Staff must be instructed that invoices from "Harris-Montgomery" are now invalid if dated post-enactment. Systems must be updated to recognize the "Southeast Regional Management District" to avoid payment delays.
Reporting & Record-Keeping
Vendor Master Files: Update the legal name in your ERP or accounting software immediately.
Insurance: Contact your broker to reissue Certificates of Insurance (COIs). If the District is an Additional Insured, the certificate must bear the new legal name to guarantee coverage in the event of a claim.
Fees & Costs
No Direct Cost: The legislation imposes no new taxes or fees. Administrative costs are limited to internal record updates and legal filing fees for amended documents.
Strategic Ambiguities & Considerations
The legislation alters the Board appointment process, allowing the Board to petition the TCEQ for director appointments rather than relying solely on the Harris County Commissioners Court.
The Ambiguity: The statute mandates that if the Board petitions the TCEQ, the Commission "shall" appoint the Board's nominees. This removes regulatory discretion from the TCEQ, effectively allowing the current Board to self-select its successors.
Business Logic: If your business requires favorable Board decisions for development permits or bond issuances, your lobbying efforts must now focus on the *current* Board members, as they now hold the controlling leverage over future appointments.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
Currently, the board of directors of the Harris-Montgomery Counties Management District are appointed by the Harris County Commissioners Court on recommendation of candidates by the sitting board of directors. The bill author has informed the committee that, at the time of creation, the district was located entirely in Harris County but that the district has subsequently grown through annexation and now includes tracts in Montgomery County, where most of the active development is occurring, as well as Waller County. H.B. 5698 would allow the district's board of directors to file a petition with the Texas Commission on Environmental Quality to appoint directors as an alternative to requesting appointments from the Harris County Commissioners Court. The bill also seeks to rename the district under statute as the Southeast Regional Management District.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 5698 amends the Special District Local Laws Code to rename the Harris-Montgomery Counties Management District to the Southeast Regional Management District. The bill gives the district's board of directors of the option of petitioning the Texas Commission on Environmental Quality (TCEQ) to appoint persons to serve on a succeeding board as an alternative to recommending to the Harris County Commissioners Court persons to serve on a succeeding board. The bill changes the condition triggering the requirement that the TCEQ appoint the succeeding board based on the board's recommendations of persons to serve on the succeeding board from a finding that any provisions relating to the appointment of the directors are invalid to the board petitioning the TCEQ for the appointment as provided by the bill's provisions.
H.B. 5698 establishes that all applicable requirements relating to the following have been fulfilled and accomplished with respect to the bill:
·the legal notice of intention to introduce;
·governor action;
·TCEQ recommendations; and
·the state constitution and laws and legislative rules and procedures.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
Effective immediately, the Harris-Montgomery Counties Management District has been legally renamed the Southeast Regional Management District. This statutory change impacts all developers, vendors, and financial institutions operating within the District; you must update internal records to prevent rejected invoices, invalid insurance certificates, and contract disputes. Implementation Timeline Effective Date: June 20, 2025 Compliance Deadline: Immediate.
Q
Who authored HB5698?
HB5698 was authored by Texas Representative Cecil Bell during the Regular Session.
Q
When was HB5698 signed into law?
HB5698 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB5698?
HB5698 is enforced by Texas Commission on Environmental Quality (TCEQ) and Harris County Commissioners Court.
Q
How urgent is compliance with HB5698?
The compliance urgency for HB5698 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB5698?
The cost impact of HB5698 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB5698 address?
HB5698 addresses topics including harris-montgomery counties management district, southeast regional management district, special districts & authorities, special districts & authorities--miscellaneous and environmental quality, texas commission on.
Legislative data provided by LegiScanLast updated: November 25, 2025
Need Strategic Guidance on This Bill?
Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.